2011

Annual Report

Latvia

Transparency International

CONTENTS
KEY ACHIEVEMENTS OF 2011 ...................................................................................................................................... 3 1. MAKING POLITICANS AND VOTERS MORE RESPONSIBLE ........................................................................................ 3 MOBILIZING SOCIETY FOR THE SUPPORT OF RULE OF LAW AND THE ANTI-CORRUPTION AGENCY............................................................ 3 THE NEW PRESIDENT AGREES AWAY WITH OLIGARCHS POWER ................................................................................................... 4 REFRESHING VOTERSMEMORY BEFORE ELECTIONS ..................................................................................................................... 4 WWW.DEPUTATIUZDELNAS.LV WATCHDOGGING THE PARLIAMENT AFTER ELECTIONS ...................................................................... 5 2. GUARDING KEY ELEMENTS OF THE NATIONAL INTEGRITY SYSTEM ......................................................................... 5 RIDDING KNAB OF ITS DESTRUCTIVE CHIEF .............................................................................................................................. 5 IMPROVING AND TESTING KNAB CHIEF SELECTION PROCEDURE..................................................................................................... 6 LOOKING FOR THE BEST OMBUDSPERSON .................................................................................................................................. 6 TESTING INTEGRITY OF THE CONSTITUTIONAL COURT ................................................................................................................... 7 3. YOUTH WORK ......................................................................................................................................................... 7 YOUTH PARLIAMENT ............................................................................................................................................................. 7 YOUTH ANTI-CORRUPTION SUMMER SCHOOL............................................................................................................................. 8 MUNICIPAL DEMOCRACY MINI-PROJECTS .................................................................................................................................. 8 ANTI-CORRUPTION WORKSHOPS IN SCHOOLS ............................................................................................................................. 9 YOUNG INVESTIGATIVE JOURNALISTS SCHOOL ............................................................................................................................ 9 4. NATIONAL INTEGRITY SYSTEM EVALUATION .........................................................................................................10 5. ADVOCACY AND LEGAL ASSISTANCE TO CORRUPTION VICTIMS ............................................................................11 ALAC .............................................................................................................................................................................. 11 GOING TO THE ECHR FIRST TIME EVER FOR DELNA ................................................................................................................ 12 WINNING A MUNICIPALITY IN FOIA CASE ............................................................................................................................... 12 6. CORRUPTION PERCEPTIO INDEX 2011 LAUNCH .................................................................................................13

7. IMPLEMENTING THE INTEGRITY PACT....................................................................................................................13 ADMINISTRATIVE INFORMATION ..............................................................................................................................15 BOARD AND DIRECTOR ........................................................................................................................................................ 15 BRIEFLY ABOUT DELNA........................................................................................................................................................ 15 ACCOUNTING POLICY .......................................................................................................................................................... 15 INCOME AND EXPENDITURE REPORT ON 2011 ......................................................................................................................... 16 DONATIONS AND GIFTS OVERVIEW ........................................................................................................................................ 17 USEFUL INFORMATION ..............................................................................................................................................22 SOCIAL NETWORKS ............................................................................................................................................................. 22 HOW TO DONATE? TAX DEDUCTIONS ..................................................................................................................................... 22 COPYRIGHT....................................................................................................................................................................... 22

Dear Members and Supporters!

Were glad to report to you on Delnas 2011 work. With conclude that the last year was very productive! We thank each of you, who strengthened Delna with a donation or encouragement, words, or supported us among relatives, friends and colleagues. We would especially like to thank Delna staff and volunteers for enthusiasm and unselfish contribution in the past year. The most significant event for 2011 was undoubtedly the dissolution of the 10th Parliament. The voters' decision at least partially purified the politics from domination of narrow interests over public priorities. Delna was active in ensuring that the dismissed 10th Parliament would act responsibly. We also strengthened voters memory so that fewer parties and politicians with an obvious involvement in corruption or questionable reputation would enter the 11th Parliament. Of course, this was not the only task in the last year. Significant progress was achieved in KNAB monitoring and support. Despite two years when some politicians and even the chief of the Bureau were trying to destroy KNAB, and rest of the ruling elite were just watching, it paid to be persistent. We also did a lot of work with young people to "immunize" them against corruption. We provided legal assistance to citizens groups that were victims or witnesses of corruption. We studied 13 pillars of the National Integrity System and did many many other things. But corruptions "end of history" hasnt arrived in Latvia in 2011. It turns out that even without the three major oligarchs, Latvian politics can still contain quite a bit of injustice and corruption. We already have to start planning for 2013 municipal elections, to rid this governance level of the most corrupt political parties and politicians too. We have to close holes in the legislation that were left there on purpose by previous parliaments and governments. We have to continue convincing young people that it is possible to live fairly and in accordance with the law. These are just some of the areas where improvements without Delnas involvement would be unlikely or even impossible. Your continued support is key in this endeavour! Cordially,

Inese Voika Chairwoman

Kristaps Petermanis Executive Director

KEY ACHIEVEMENTS OF 2011

1. MAKING POLITICANS AND VOTERS MORE RESPONSIBLE MOBILIZING SOCIETY FOR THE SUPPORT OF RULE OF LAW AND THE ANTI-CORRUPTION AGENCY

Public protest outside of Parliament on June 2 | Krista Burne

On the 2nd June, we organized a protest outside the Latvian Parliament. It had several reasons. Although the process of 10th dismissal of the Parliament, it was still able to freely enact legislation and change the Constitution. On this day the Parliament was electing the new president of the country and in Delna`s opinion both of the nominated candidates were not suitable. There was a concern about the President's authority "theft", as it had happened on other occasions when incompetent persons were appointed. There was a stressful situation in KNAB (Bureau), which continued to lead systematic offenses of dismissed director N.Vilntis, but politicians were delaying escalating problem-solving. "The first 10 steps to recover the stolen country" was introduced in Parliament, calling for the use of chance in 2011 to solve many problems of the previous admission. Recognizing that most of the tasks of the last year are resolved or at least started to address, however, three of them even in the middle of 2012 have not achieved substantial progress. We thank every one of more than 1,000 people who responded to the call and were not indifferent. Thanks for the material support to JSC "BTA".

"THE FIRST 10 STEPS TO RECOVER THE STOLEN COUNTRY"

Kas izpildts 2011.gad?

1.Expel N.Vilntis from being a director of KNAB 2.Reduce partys financial dependence on party sponsors 3.Necessary to establish criminal liability for the party "slush funds"

4.Repealed closed parliamentary votes 5.Abolish immunities of Parliament

Members 6.Provide more effective judicial system

7.Set higher standards for candidates applying for Constitutional Court judges 8.Achieve transparency in media

ownership 9.Increase opportunities for the public to

participate in decision-making 10.Change in the approach of corporate governance appointment

done|in process | no progress

Delna is being substantially supported by the Open Society Institute (Open Society Institute, OSI) with providing institutional grants for the year 2011. We won`t mention the OSI under each of the described activities, Delna sincerely thanks to this Foundation for the support on nearly every work done this year. 3

THE NEW PRESIDENT AGREES AWAY WITH OLIGARCHS POWER

Newly elected Latvian president in front of the Parliament on June 2 | Krista Burne

June 2, 2011 when the newly elected Latvian president came out of the parliamentary buildings on the 2nt June, 2011, Delna invited Andris Berzins to sign the poster with the slogan "Down with the oligarchs in power" as proof that he agrees to the assembled people call to reduce the impact on public policy and economics by some people. To our surprise, Andris Berzins did it. We invite everyone to keep Andris Berzins to the word and report back to Delna, if you notice that he "slipped".

REFRESHING VOTERSMEMORY BEFORE ELECTIONS

To promote the accountability of politicians and parties before the 11th Parliamentary elections we set up a special website www.kandidatiuzdelnas.lv. The aim was to enable the public desire for responsible decision in assessing the political party and each candidates previous steps. Set up page refreshed voters and media memory of important events related to the rule of law and corruption, as well as reflecting more than 200 candidates at the previous operation of the rule of law (in some cases - of dilution) in the field. The following pages were created before the 10th Parliamentary elections, and both have enjoyed great popularity among the public and the media. Year 2011 will be remembered with Delna regional visits promoting the web site DeputatiUzDelnas.lv and responsible voting outside Riga, Delna staff and volunteers visited Valmiera, Sigulda, Rezekne, Jekabpils, Tukums and Kuldiga. Citizens were invited to visit "Political games" tent and having a chance, for example, to "Flick Slesers" or beat L. Mrniece resignation of duration and of course learn more useful information about other politicians. Special thanks to the Soros Foundation - Latvia and JSC "BTA".

WWW.DEPUTATIUZDELNAS.LV WATCHDOGGING THE PARLIAMENT AFTER ELECTIONS

In order to promote political accountability not only before the elections, but also between the election periods and to ensure the regular work of parliament and systematic monitoring of the 10th parliamentary election, Delna set up monitoring tool www.deputatiuzdelnas.lv. The new parliamentary monitoring tool publication was conceived in June 2011, but it had to be postponed due to unscheduled 10th Parliament dismissal. In December 2011 we launched the Internet tool that can be used to store not only information about members and lots of current local and parliamentary elections, but also were to regularly pay attention to different aspects of parliamentary work. DeputatiUzDelnas.lv continues to maintain popular KandidatiUzDelnas.lv resources "database corruption event" in which anyone can access a variety of events ranging from small trickery ending with the theft schemes. Special thanks to the Soros Foundation - Latvia for support.

2. GUARDING KEY ELEMENTS OF THE NATIONAL INTEGRITY SYSTEM RIDDING KNAB OF ITS DESTRUCTIVE CHIEF
Immediately after the appointment of N. Vilnitis as a director of KNAB, Delna criticized his actions for the shameful institution reform to reduce KNABs efficiency. Following-up institutions and the new chief of the operation, it became increasingly clear that the politicization and lack of clarity over N. Vilnitis selection procedure was done deliberately to undermine KNAB. However, KNAB monitoring action in 2010 and early 2011 was very slow and the solution required a significant public pressure and KNAB employee initiative. In the first half of 2011 Delna active followed the developments decision to support his removal from office in KNAB in resolving the conflict and called on the Prime Minister as soon as possible to establish a panel of professionals to evaluate N. Vilnitis actions and conformity assessment of the post, as required by KNAB. We expressed our views on the actions of officials in the case when J. Strike was threatened and demanded immediate action in the case when N. Vilnitis dismissed his deputy A. Vilks. N. Vilnitis was removed from office at a speed rarely experienced on June 16 after a day after the commision chaired by the Attorney General had found systematic violations of the law in N. Vilnitis operations in KNAB.
N. Vilnitis leave the Saeima Legal Affairs Committee for its

IMPROVING AND TESTING KNAB CHIEF SELECTION PROCEDURE

Delna supported the establishment of the Corruption Prevention and Combating Bureau (KNAB) in 2002 and closely followed the work of the Bureau since then. We believe that strong KNAB is one of the cornerstones of reducing corruption in Latvia. One of the prerequisites of existence and effective operation of KNAB is an independent and competent Chief of KNAB. Therefore, the quality of the Chiefs selection process is very important. Already since 2002, Delna has campaigned for the selection of the Chief in the open competition and acted as observer of selection in all previous years, except the selection of N. Vilnitis, who was removed from Bureau because of the systematic violations of the law.

Press conference on the KNAB selection results | Toms Norde, State Chancellery

By analysis how the previous KNAB Chief Normunds Vilnitis came into KNAB and his subsequent actions destructive impact on Bureau work, we concluded that part of the problem was Ivars Godmanis (LPP / LC) reigned government which established the KNAB Chief selection procedure in where a decisive role was played by politicians, but a minimal role in the candidate objective suitability for the post to be endorsed, for example, experience and professional training. Similarly, neither the media nor the public had enough information about the previous competition process for the Chief of KNAB post to be able to clearly respond to N. Vilnitis appointment. For these reasons, Delna actively participated in the development of KNABs selection procedures in Defense, Interior and anticorruption commission, as well as seen in competition, which was chosen for the current Bureau Chief J. Strelcenoks.

LOOKING FOR THE BEST OMBUDSPERSON

In order to stimulate discussion and highlight publicly the candidates, Delna tends to hold a candidate debate or similar measures. Previously we have done it with the KNAB and the presidential candidates. In February 2011 for the first time we launched a debate between two candidates on the post of Ombudsman - Juris Jansons and Anita Kovalevska -, which was to take, at his own words, "crumbled" R. Apsitis place. Delna also set up a web page musutiesibsargs.wordpress.com, which collected information on both candidates, as well as NGO views on expectations of a new Ombudsman.
Illustration from the Ombudsman's website

During the from NGO side well visited discussion current Ombudsman J. Jansons was not trying to change that unflattering impression created by himself and led the majority of focus group participants provide quite a gloomy picture of the Latvian Human Rights if he would be elected. Unfortunately, also in this case the thesis confirmed that important posts should not be a place to learn and it is needed to appoint people who have proven themselves in accordance with previous professional life. Thank you Satori bookshop and the Soros Foundation - Latvia for the support of the event.

TESTING INTEGRITY OF THE CONSTITUTIONAL COURT

In addition of challenging two of the Constitutional Court judgments at the European Court of Human Rights, Delna also actively monitored the integrity of the Constitutional Court. Important test for that was, of course, the attitude and behavior of Constitutional Court in so-called Vineta Muizniece "Protocol file. We remind that V. Muizniece when she was the Head of Parliamentary Legal Committee office is likely to be tampered with commission protocol, thus hindering the progress of the Criminal Law Amendment to criminalize a broader political party funding irregularities circle. In Delna opinion the institution, whos Screenshot of LTV channel on YouTube authority and decision is binding doomed to everyone, and, in most cases, decisions are final and not to appeal should have much higher accountability, transparency and fairness in comparison with other institutions. The first hearing in the criminal proceedings could begin in October 2012.

3. YOUTH WORK YOUTH PARLIAMENT

3 June 2011. The first Youth parliamentary session | Ernests Dinka, Saeimas Kanceleja

In 2011 Delna cooperated with the Parliament to restore youth parliamentary activity after eight years of interruption. In practice, the implementation of the motto "Through the experience to understanding", the Parliament gave 15-19 year old youngsters first-hand experience in parliamentary democracy also showing the practical knowledge of how the parliamentary work is being organized. Delna most important contribution to this process was JauniesuSaeima.lv website. Page served several important functions: serving as a platform to the pre-election competition and educated the election candidates and other site visitors on the important issues of democracy and helped to organize youth parliamentary work. In Youth`s Parliament day politicians developed and defended their ideas, as well as the adopted four declarations with proposals for the development of Latvia, emphasizing the role of young people. Unfortunately, because of extraordinary parliamentary elections in 2011 it was not possible to continue work on young people's ideas in practice, so this plan left in 2012. Special thanks to The Royal Netherlands Embassy, F.Eberta Fund, the European Commission Representation and European Parliament Information Office.

YOUTH ANTI-CORRUPTION SUMMER SCHOOL

Brdis pretkorupcijas darbnc, Delnas Pretkorupcijas vasaras skola 2011

In June Delna Anti-Corruption Summer School was organized. 20 motivated young people from Latvia gathered together to gain new knowledge. Intensive five-day work was obtained and a thorough knowledge of corruption and its prevention in Latvia and EU was discussed together with the media situation, investigative journalism, political events, the judiciary, the Prosecutor General, Bureau and other law enforcement agencies, as well as social values and civic participation opportunities for young people. Classes were led by the best Latvian experts in various fields. This Anti-Corruption Summer School is not just a theory, but a real possibility of practical activities and issues for young people to understand the importance of anti-corruption and political developments in both Latvia and global scale. In leisure time young people modeled 11th Parliamentary elections simulating the pre-election campaigns of political parties. Special thanks for support to Latvian Embassy in the Netherlands, the Friedrich Ebert Foundation, the European Parliament Information Office and European Commission Representation in Latvia.

MUNICIPAL DEMOCRACY MINI-PROJECTS

Based on the positive experience in 2010 and 2011 Delna organized democracy mini project competition "Youngsters can! Both youth NGOs and informal groups were invited to present their projects to promote civic participation in local governments in partnership with decision-makers. Out of 22 applications 4 projects were selected that received some financial support for their bright ideas to implement in Beverinas, Priekule, Gulbene and Dobele counties. Successful projects were united by the idea of constructive dialogue making and cooperation among counties youth organizations and local governments to ensure a strong voice for young people and their input in regional development planning. For example, in Beverinas region youth organizations and groups were gathering together to strengthen co-operation and interests of young. In Bunka region youngsters even founded the Youth Council as the official local partner in youth affairs. Meanwhile, in Dobele municipality young people organized the "orientation competition" so that youngsters would become familiar with the local services and would propose their needs to the right people. They would deal with it more quickly and efficiently. Special thanks for support to Latvian Embassy in the Netherlands, the Friedrich Ebert Foundation, the European Parliament Information Office and European Commission Representation in Latvia.

ANTI-CORRUPTION WORKSHOPS IN SCHOOLS

Corruption simulation game in Balvi high school, anti-corruption workshops in schools in regions

From September to November Delna visited 21 schools in Latvia representing Anti-corruption workshops, it directly reached more than 600 secondary school students. The workshop aim was to educate young people about democracy, rule of law and corruption and its impact. Strongly emphasizing the practical use of knowledge and skills of young people, for example, what are the rights of each citizen, and how young people can engage in institutional work, what to do when facing corruption, etc. The main thing of the event was a simulation game based on a real election fraud in Kubulu parish, and especially strong allows young people to understand the mechanisms of corruption and personal values, importance of the choice. Special thanks for support to Latvian Embassy in the Netherlands, the Friedrich Ebert Foundation, the European Parliament Information Office and European Commission Representation in Latvia.

YOUNG INVESTIGATIVE JOURNALISTS SCHOOL

For the first time in history of 2011 Delna organized a new research training program for journalists Investigative journalism. Practice. Policy ". In two recruits in the spring and fall 25 participants that were planning to link their carrier to the political or journalistic research applied. The program aimed to facilitate future professional interest in the socio-political developments and the development of good journalism in the professional quality, long term, thereby strengthening the media and public interest watchdog role, as well as political accountability in Latvia. Overall, participants in the program evaluation questionnaires showed that they were very satisfied with the program during the lessons and gained practical skills. We are pleased to announce that two of the participants are now beginning to work in the magazine "ir" and newspaper "Diena". In each session there were 10 classes with the participation of experienced and professional investigative journalists, political scientists, lawyers and other experts. Within the program the young journalists went to the parliamentary plenary sessions and committee meetings, interviewed members and experts, as well as studied about various parliamentary activities related topics, such as budget, auto base, who are assistants and what are the parliamentary

activities. 5 best people from the spring session also participated in the Delna organized Anti-Corruption Summer School. Many thanks to the Soros Foundation - Latvia for supporting the program.

4. NATIONAL INTEGRITY SYSTEM EVALUATION

In 2011 Delna completed Latvian National Integrity System (VGS) assessment. It analyzed 13 areas, or pillars, which together constitute the Latvian anti-corruption institutional framework and provides the ability to resist corruption and deal with it. The study analyzes the period from the 2008 till 2011. Latvian VGS assessment is part of the 25 nation joint initiative to strengthen national and regional anti-corruption framework and promote sustainable and effective reforms. VGS is an international anti-corruption organization Transparency International that gives a methodological approach for analyzing specific public administration, legislative, judiciary and other sectors of the efficiency of prevention of corruption and good governance. VGS assessment and recommendations available on Delna's website www.delna.lv section "Publications". In 2012, Delna will work more intensively on the most problematic sector analysis and recommendation implementation. We thank the European Commission for their support and researcher Valts Kalnins for the work that he has done. He won European recognition.

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5. ADVOCACY AND LEGAL ASSISTANCE TO CORRUPTION VICTIMS ALAC

In 2011 very active was Delna`s legal aid center. Its aim is to create socially relevant case law and to prevent gaps in laws and regulations to their application. Centre's activities are divided into two main sectors - legal assistance in specific cases and defending the interests of the Parliament, the Cabinet of Ministers and Ministries. For dozens of citizens and their associations center provides a wide range of legal assistance. In most cases, assistance includes advice about the citizen right and where, how they can protect them. However, in relatively large number of cases there is suspicion of corruption; Delna participated in more details to represent persons in court. Main tasks: proceeding for violations INDelight Photography, Flickr of wind power planning in Dunika and Medze, detailed plan on historic center of Pvilosta, debris "islands" removal from the Kisezers Lake. We are pleased to note that in 2011 the first time in Delna's history we turned into the European Court of Human Mr.Samphan with two case applications (read more in the next section). Historically, the center has specialized in the fields of planning and construction because there is the largest number of customers. However, in 2011, in response to the public demand, the center expanded the scope helping whistleblowers. The most serious case is related with the help of an alarm monger from the State Regional Development Agency due to the unfair competitive position (in the beginning of 2012 this case was won in the 1st instance). A significant foothold in the work of the Legal Aid belongs to the volunteer lawyers. In September 2011, Delna worked with Latvian University Faculty of Law Legal Clinic and help center, attracting graduate students. It does help to cope with the large load of the center, and provides excellent practice for the next Legal Professionals. Delna is also an active participant in the parliament and other state institutions by submitting proposals to the bill and improvement of other legislations. The most important of these is the Construction Law and Territory Development Planning Law Project. In Delna`s advocacy work experience is very essential and has accumulated over the years. It has come from the public obtained information on the shortcoming laws or institutional practice.In 2011 very active was Delna`s legal aid center. Its aim is to create socially relevant case law and to prevent gaps in laws and regulations to their application. Centre's activities are divided into two main sectors - legal assistance in specific cases and defending the interests of the Parliament, the Cabinet of Ministers and Ministries. For dozens of citizens and their associations center provides a wide range of legal assistance. In most cases, assistance includes advice about the citizen right and where, how they can protect them. However, in relatively large number of cases there is suspicion of corruption; Delna participated in more details to represent persons in court. Main tasks: proceeding for violations of wind power planning in Dunika and Medze, detailed plan on historic center of Pvilosta, debris "islands" removal from the Kisezers Lake. We are pleased to note that in 2011 the first time in Delna's history we turned into the European Court of Human Mr.Samphan with two case applications (read more in the next section). Historically, the center has specialized in the fields of planning and construction because there is the largest number of customers. However, in 2011, in response to the public demand, the center expanded the scope helping whistleblowers. The most serious case is related with the help of an alarm monger from the State Regional Development Agency due to the unfair competitive position (in the beginning of 2012 this case was won in the 1st instance).

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A significant foothold in the work of the Legal Aid belongs to the volunteer lawyers. In September 2011, Delna worked with Latvian University Faculty of Law Legal Clinic and help center, attracting graduate students. It does help to cope with the large load of the center, and provides excellent practice for the next Legal Professionals. Delna is also an active participant in the parliament and other state institutions by submitting proposals to the bill and improvement of other legislations. The most important of these is the Construction Law and Territory Development Planning Law Project. In Delna`s advocacy work experience is very essential and has accumulated over the years. It has come from the public obtained information on the shortcoming laws or institutional practice. Many thanks to the Soros Foundation - Latvia for supporting the program.

GOING TO THE ECHR FIRST TIME EVER FOR DELNA

For the first time in the history of the organization Delna together with Dunika and Medze parish local residents and land owners turned into the European Court of Human Rights to ask to evaluate two of the Constitutional Court judgment rules of law. In Delna`s opinion the Constitutional Court may have had a narrow business interest ignoring the substantial procedural irregularities and public opinion. Similarly, it is significant that a judgment was delivered in advance for understanding environmental law criticized by Kaspars Balodis, Viktors Skudra, and Vineta Muizniece, a former politician, whose case concerning the forgery of the Parliament Legal Affairs Committee in October 2011, was seen by the court.

ECHR buildng, Strasbourg | geoterranaute, Flickr

Briefly about the main in the case - both parishes local people think that the country has serious breach their rights to the property, private and family life, fair trial and effective protection of state institutions, allowing the wind energy generation in Medze and Dunika parish areas. Delna together with sworn advocate Inese Nikuceva of the attorney office provided a broad legal assistance from consulting to application to the European Court of Human Rights training. Many thanks to the Soros Foundation - Latvia for the program.

WINNING A MUNICIPALITY IN FOIA CASE

In October 18, 2011 Delna in last instance of Ventspils City Council successfully won the case for disclosure. We turned to court to improve the legal framework for the freedom of information. Delna believed that the Ventspils City Council incorrectly applied the laws and regulations and required a disproportionate cost for the publics requested information. The judgment is an important legal precedent for the freedom of information because it approves that the state and local authorities should impose price list specified by the Cabinet. The authorities cannot arbitrarily charge higher fees for copies, thus limiting the public's right of publicity and information. Special thanks to the Soros Foundation - Latvia and the Open Society Institute for supporting these activities.

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6. CORRUPTION PERCEPTIO INDEX 2011 LAUNCH

In 2011, 1st December, International Anti-Corruption day, Delna announced the Latvian 2011 Corruption Perceptions Index (CPI). In 2011 Latvian CPI was 4.2 points out of 10. This places Latvia in 61st position worldwide. Historically the best result - 5.0 - Latvia reached in 2008 for the third year there is deterioration in the CPI. On the one hand, we can be proud of ourselves because we were in the 3rd position among the countries of the USSR; we are only surpassed by Estonia and Lithuania. On the other hand, within the European Union we are in 22nd position just ahead of countries where corruption is more clearly a national culture. For comparison - Lithuania is on the 19th position with 4.8 points, while Estonia is 12th with 6.4 points. Continuing the tradition of the annual CPI annunciation in a place related with corruption. A year ago, we did it next to the South Bridge. In 2011, it happened in the former central office of Parex Bank on Kr. Valdemara Street. This choice is justified by so-called "Parex case" and involved persons attitude demonstrating the bases on public criticism of corruption in Latvia involving secrecy, the fear of public interest, amateurism and perhaps even deliberate sabotage. Since 1998 international anti-corruption organization Transparency International Latvia has been included among those countries where Corruption Perceptions Index (CPI, English - Corruption Perception Index) is being set. The CPI provides an easily understandable assessment of how the experts and entrepreneurs see the level of corruption and the changes in public administration and in the rest of the public sector. By the term "corruption" is understood a person entrusted to the use its public power for private goods. We thank the Latio company for the support in terms of providing us with the event venue.

7. IMPLEMENTING THE INTEGRITY PACT

In 2011 Delna ha continued Latvian National Library's new building project monitoring in the perspective of anti-corruption. Delna has been involved in this process because itsigned a participation contract in 2005 (Integrity pact) with the Ministry of Culture and is disposed of the State Agency "Jaunie Tris Brali. Last year the project didnt have any significant turn outs, so all attention was given to Delna`s daily construction process to reduce in 2008 concluded a legally untenable contract with general contractor "National Construction Association" (NBA) on the public interests. As the Cabinet was allowed to not apply the Public Procurement Law builder selection, allowing the NBA to affect contract. There are no anti-corruption and good prospect important norms in this signed contract compared to the international construction standard conditions (FIDIC). For example, as the Ministry of Culture doesnt
Amelok, Flickr

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have a chance to assign or sub-contractor building`s construction works to carry out cost optimization (value engineering) activities without the consent of the NBA. That makes it literarily impossible for a cheaper or more efficient material or technical solutions, as well as the general contractor always receives some more tasks that must be done. One of the major works in 2011 was to prepare an application to the Constitutional Court to challenge the illegality of the Cabinet decision made in February 20, 2008. This decision states that the Latvian National Library building is associated with a significant national interest, namely the commencement of construction work would delay in the need for additional financing, so under the Public Procurement Sections 3rd paragraph, the Public Procurement Law of the Latvian National Library project was not suitable. In the European Union law- overriding national interest is used to understand the force majeure and the European Union (Community) Court has confirmed that for many times. Although the positive judgment of the Constitutional Court wouldnt affect the project development and contracts with the builders but this would still have been an important legal precedent for the mass public facilities in the future. Unfortunately, during the year 2011 it failed to gain any Parliament faction`s and at least 20 Member signatures to submit the application to the Constitutional Court. Thanks to the Partnership for Transparency Fund and the Open Society Institute for supporting the activities.In 2011 Delna ha continued Latvian National Library's new building project monitoring in the perspective of anti-corruption. Delna has been involved in this process because itsigned a participation contract in 2005 (Integrity pact) with the Ministry of Culture and is disposed of the State Agency "Jaunie Tris Brali. Last year the project didnt have any significant turn outs, so all attention was given to Delna`s daily construction process to reduce in 2008 concluded a legally untenable contract with general contractor "National Construction Association" (NBA) on the public interests. As the Cabinet was allowed to not apply the Public Procurement Law builder selection, allowing the NBA to affect contract. There are no anti-corruption and good prospect important norms in this signed contract compared to the international construction standard conditions (FIDIC). For example, as the Ministry of Culture doesnt have a chance to assign or sub-contractor building`s construction works to carry out cost optimization (value engineering) activities without the consent of the NBA. That makes it literarily impossible for a cheaper or more efficient material or technical solutions, as well as the general contractor always receives some more tasks that must be done. One of the major works in 2011 was to prepare an application to the Constitutional Court to challenge the illegality of the Cabinet decision made in February 20, 2008. This decision states that the Latvian National Library building is associated with a significant national interest, namely the commencement of construction work would delay in the need for additional financing, so under the Public Procurement Sections 3rd paragraph, the Public Procurement Law of the Latvian National Library project was not suitable. In the European Union law- overriding national interest is used to understand the force majeure and the European Union (Community) Court has confirmed that for many times. Although the positive judgment of the Constitutional Court wouldnt affect the project development and contracts with the builders but this would still have been an important legal precedent for the mass public facilities in the future. Unfortunately, during the year 2011 it failed to gain any Parliament faction`s and at least 20 Member signatures to submit the application to the Constitutional Court. Thanks to the Partnership for Transparency Fund and the Open Society Institute for supporting the activities.

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ADMINISTRATIVE INFORMATION
This chapter contains important information from the reports of Delna and the general public benefit activities in 2011, submitted to the State Revenue Service (SRS). SRS can be found in reports submitted by TI and the Ministry of Finance web pages and www.delna.lv, www.fm.gov.lv.

BOARD AND DIRECTOR

Inese Voika Chairman of the Council since 26.04.2010. Jnis Bernts Member of the Council since 26.04.10. Aivars Endzi Member of the Council since 21.05.09. Pauls Raudseps Member of the Council since 31.03.08. Jnis trens Member of the Council since 31.03.08. Laura Mielsone Member of the Council since 26.09.2011. Mrcis Gobi Member of the Council since 26.09.2011. Valts Kalni Member of the Board until 27.01.11. Kristaps Petermanis Director since 08.11.2010.

BRIEFLY ABOUT DELNA

Associations Name Registration number, place and date Public benefit organization status Sabiedrba par atkltbu Delna 40008037054 in commercial registration, Riga, 20th June 2005 Ministry of Finance decision no. 506, made on the 21st October, 2005 Responsible certified auditor: Kristine Potapovia, certificate no. 99, SIA Potapovia and Anderson, dens street 12-45, Riga, LV-1007, Latvia

Auditor's names and address

8. Contracts of employment of employees and average annual total of their wages. The average number of employees in 2011 was 9. The total wages paid: LVL 73,222.63.

ACCOUNTING POLICY
General Principles The Association prepared the Annual Report in accordance with the Regulations No.808 of the Cabinet of Ministers of the Republic of Latvia dated 3 October 2006 Regulations on annual reports of associations, foundations and trade unions (hereinafter CM Regulations No.808). A year of account of the Association covers a 12 month period from the 1st of January to the 31st of December. Membership fees, admission fee and other annual payments Reflect the grand total of membership fees and admission fees applicable to the year of account. Revaluation of foreign currency All items of the balance sheet in foreign currency are translated into Latvian currency Lats at the official exchange rate of the Bank of Latvia as at the balance sheet date. Currency exchange rates prescribed by the Bank of Latvia as at 31st December: 31.12.2011. 31.12.2010. USD 0.544 0.535 EUR 0.702804 0.702804

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Fixed Assets Depreciated book value of fixed assets is calculated by deducting from the initial cost the accumulated depreciation, also attrition of intangible assets and fixed assets depreciation amounts accounted during the year of account and during previous years. Amortization of intangible assets and depreciation of fixed assets are calculated applying the rates as follow: % 2,5 20 - 35

Real estate Other fixed assets

Stocks Stocks are reflected at their purchase price. If necessary the value of outdated, low turnover or damaged stock subjects to writing off. Accounts receivable Accounts receivable in the balance sheet are reflected at net value, deducting from the initial value the special reserves for doubtful and bad debts. Special reserves for doubtful and bad debts are formed in cases, when the management believes that recovery of specially marked off debts is doubtful. Based on the lapse days of accounts due from buyers and customers, general reserves for bad and doubtful debts are formed additionally to the special reserves. Taxes The grand total of liabilities of the Association to public budget and local budgets for payable taxes and dues, as well as for the mandatory state social insurance contributions. Loans Initially the loans are recognized in the amount of the received monetary items net of costs associated with the loan receipt. In further periods the loans are reflected at the amortized cost, which is derived by applying the loan effective interest rate. The difference between the amount of received loan net of costs associated with the loan receipt and the loan repayment value is being gradually included into profit & loss calculation during the loan period. Donations and contributions donations and contributions intended for procurement of specific assets, are counted as deferred earnings in the balance sheet and posted to the profit & loss statement proportionally to their expected lifetime. Cash and cash equivalents For the purposes of cash flow statement cash and cash equivalents are composed of petty cash, balance on current accounts.

INCOME AND EXPENDITURE REPORT ON 2011

2011 Ls I. Membership fees, admission fee and other annual payments II. Received donations and contributions V. Operating income VI. Other earnings VII. Earnings Total VIII. Expenses 2. Material costs 3. Salary 4. Social insurance contributions 5. Fixed assets and Intangible assets depreciation and retirement 6. Other expenses IX. Taxes X. Expenses Total XI. Difference between earnings and expenses Assets 1 2 3 4 450 12 993 480 152 586 166 509 (1 275) (74 102) (17 851) (7 250) (72 318) (523) (173 319) (6 810) 2010 Ls 375 9 068 3 906 193 368 206 717 (2 828) (77 244) (18 608) (7 839) (75 890) (490) (182 899) 23 818

5 6

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Long-term investments II. Fixed assets: Real estate Other fixed assets Fixed Assets Total: Current Assets I. Stocks: Goods Stocks Total: II. Accounts Receivable Accounts due from buyers and customers Other accounts receivable Deferred expenditures Accounts Receivable Total Assets Grand Total Liabilities I. Funds Capital fund Reserve fund Funds Total: II. Long-term liabilities: Long-term loans from credit institutions Other loans Long-term liabilities total: III. Short-term liabilities: Short-term loans from credit institutions Other loans Tax and state social insurance contributions Other liabilities Liabilities Grand Total Assets Grand Total

76 659 5 619 82 278

78 731 10 797 89 528

5 433 5 433 2 957 265 3 222 37 279 128 212

6 708 6 708 853 4 161 942 5 956 27 980 130 172

8 9 10

11 12 13

(20 804) (6 810) (27 614) 95 394 10 040 105 434 3 746 2 010 2 998 41 638 50 392 128 212

(44 622) 23 818 (20 804) 98 527 11 045 109 572 3 605 1 005 3 252 33 542 41 404 130 172

12 13 14 15

DONATIONS AND GIFTS OVERVIEW

2011 Ls 3 003 2010 Ls 40

I. Opening balance Donations and contributions received during the year of account 1. For unlimited application (including general donations) 1.1. Latvian legal entities 1.2. Foreign legal entities 1.3. Private persons (residents) 1.4. Private persons (non-residents)) 1.5. Anonymous contributors and donors 2. For definite purposes (including, earmarked donations) 2.1. Latvian legal entities 2.2. Foreign legal entities 2.3. Private persons (residents) 2.4. Private persons (non-residents)) II. Grand total of donations and contributions received during the year of account

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12 892 10 000 2 785 107 100 100 12 992

7 948 1 016 273 5 177 1 482 1 120 1 120 9 068

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Disposition of donations and contributions 1. For unlimited application (including general donations) 1.1. For objectives and tasks provided for by Articles of Association 1.1.1. . For public benefit activity 1.2. For administrative costs 2. For definite purposes (including, earmarked donations) 2.1. For objectives and tasks provided for by Articles of Association 2.1.1. For public benefit activity 2.1.2. For other objectives and tasks 2.2. For administrative costs III. Grand total of disposition of donations and contributions IV. Closing balance

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14 896 12 007 12 007 2 889

6 105 4 601 4 601 1 504 -

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1 100 1 000 1 000 100 15 996 -

6 105 3 003

Statement on administrative expenses made from general donations Pielikumi 1. General donations received during the year of account 2. Disposition of donations for administrative costs 2011 Ls 12 892 2 989 2010 Ls 7 948 1 504

UNRESTRICTED DONATIONS BY PERSON

2011 Ls 10 000 10 000 900 50 13 15 500 25 50 7 100 20 100 100 2010 Ls 514 2 500 1 016 167 106 273 100

PBLA Mission in Latvia Semicom SIA Association ELJA 50 BTA Insurance Company SE Legal entities incorporated in the Republic of Latvia Sydney Latvian Society Ltd. Corporation Daugaviete Sidneys Group Foreign legal entities Andrejs Vasijevs Ilze Gulna Jautrte Briede Kristaps Petermanis Ints Mintauts Sili Lita Akmane Mrti Bumbieris Artis Slosbergs Sandra Sple Lsma Kokina Vilis Vitols, Marta Vtola Aivars Endzi

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Rasma Krklia Pauls Raudseps Aivars Ivars Juris Sinka Guntis Brzi Inese Voika Ilga Anita Brzkalna Gints Ppiis Madara Fridrihsone Inita Vecbatika Jnis Bernts Aelita vtia Juris Sils Valts Kalni Vita Anda Trauda Jnis trens Anita Astrda Apele Krlis Rokpelnis Mrcis Gobi Private persons (residents) Anonimous donators and contributors Total amount of received donations and contributions

300 500 105 2 785 107 12 892

100 1 000 25 250 45 88 20 10 100 260 1 000 500 75 50 1 000 45 10 500 5 178 1 482 7 948

DONATIONS FOR A PURPOSE

2011 Ls To finance organizations activities Jnis Bernts Parliament Transparency Monitoring Program Karna Janova Aija Avotia Krijnis Zari and Fairness 100 1 000 20 100 1 120 1 120 100 100 2010 Ls -

Private persons (residents)

UNRESTRICTED DONATIONS
2011 Ls Parliament Transparency and Fairness Monitoring Program Meal expenses during regional traveling Membership for the Internet data base Hand-outs Fixed assets depreciation Politics Monitoring and Interest Protection Program 36 64 741 841 2010 Ls 49 891 940

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Meal costs for volunteers Payment for experts help Commercial costs PR costs T-shirts for the participants Printing and photography costs Venue rental costs Business travel costs Meeting with reporters Hand-outs Transportation costs Communication expenses Fixed assets depreciation Legal Support Program for Residents in cases of corruption Meeting with reporters and media Client consulting expenses Document forwarding expenses Transportation costs Magazin membership costs Fixed assets depreciation Civic education and participation program for young people Transportation costs Computer design costs Fixed assets depreciation

265 2 000 2 694 1 730 1 017 307 30 95 471 456 120 501 9 686 25 17 69 40 481 632 12 336 500 848 12 007 161 316 26 75 20 204 46 61 1 980 2 889 14 896

36 64 50 2 386 2 536 14 1 40 1 070 1 125 4 601 3 26 20 86 50 1 319 1 504 6 105

For public benefit activities total Administrative costs Communication costs Bills Flickr programmembership costs Office costs State Tax Accounting Software improvements E- lapas, LAPAS members cash outlay Financial revision costs Accounting Software improvements Advertisements in newpapers Post Office costs Fixed assets depreciation Disposition of donations for unlimited application total

USE OF RESTRICTED DONATIONS

Parliament Transparency and Fairness Monitoring Program Home page making costs For public benefit activities total 1 000 1 000 1 000 -

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Administrative costs Meeting with the partners Disposition of donations and contributions for certain purposes total

100 100 1 100

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USEFUL INFORMATION SOCIAL NETWORKS

@delna_lv

Facebook.com/BiedribaDelna

Draugiem.lv/delna

HOW TO DONATE? TAX DEDUCTIONS

In order to support Delna activities with a donation, visit delna.lv/ziedot. Delna is a public benefit association, so by donating for Delna you are entitled to substantial tax benefits. For individuals 20% of the donation amount as personal income tax returns. If a company donates Delna , it is entitled to corporate income tax deduction of 85% of the donation amount. You can also donate through PayPal, addressed it to ti@delna.lv Properties donation by bank transfer: Association Sabiedrba par atkltbu Delna Registration No 40008037054 Registered Office: A.aka iela 49-4, Riga, LV1011 Account: LV63HABA000140J035842 Name of bank: Swedbank AS Bank address: Balasta dambis 1a, Rga,LV-1048, Latvija The BIC/SWIFT: HABALV22

COPYRIGHT
Front cover photos of the author Krista Burane. If by photos the author is not stated, copyright belongs to Delna.

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